Independence, liquidity and a level playing field – yet another impossible trinity?
Balancing act may prove impossible for central banks
Walter Bagehot urged the Bank of England to offer unlimited lending at high rates against good collateral
Bagehot's Lombard Street is still compulsory reading for central bankers because of its description of how a crisis evolves and what central bankers should do as lenders of last resort. However, since the financial crisis, central banks and regulators have become increasingly concerned about the potential moral hazard dimensions of Bagehot's advice. The Basel III agreement includes an
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com